Aircraft Value News [April 2, 2018] -

Issue: April 2, 2018

Maintenance Reserves Typically Higher Than End of Lease Payments

The maintenance reserves paid by lessees to lessors can be typically higher than the lump sum end of lease payments but the calculation of the full life adjustment as it relates to the value of the aircraft usually equates to the end of lease payment. The calculation for maintenance reserves…

By: Aircraft Value News

April 2, 2018

AVN

A340-500 Values Tested With Marketing of Four More Units

Values have Fallen by 90+ Percent in Just Over Ten Years The fall in the value of used widebodies continues to be a concern although the decline in the values of the A340-500 represents the extreme. While the values of used mainstream narrowbodies continue to enjoy a measure of success…

By: Aircraft Value News

April 2, 2018

AVN

B747-400F Experience Shows Voltatility for Rentals

The lease rentals of the B747-400F are rising again in the context of an improving airfreight market although the prospect of a trade war precipitated by the U.S. has the potential to undermine recent gains particularly for the B747-400F which is reliant on traffic to and from China. The experience…

By: Aircraft Value News

April 2, 2018

AVN

United 2018-1 EETC Sees Strong Values for Some Aircraft

The United Airlines Enhanced Equipment Trust Certificate (EETC) for 2018 sees a total of 16 aircraft being placed into the 2018-1 package with reasonably consistent values being provided by three appraisers. The aircraft comprise the two B737-800s, six B737-9s, five B787-9s and three B777-300ERs representing a mix of very good…

By: Aircraft Value News

April 2, 2018

AVN

Debate over Date of First Flight versus Date of Delivery Continues

While lease rentals tend to be determined on the basis of the year of build, values continue to be calculated on the month of build although “build date” can continue to mean different things to different appraisers. Some appraisers in establishing the “build date” will use the date of delivery…

By: Aircraft Value News

April 2, 2018

AVN

ATR72-600 Rates Return from Precipice

The market for the latest, larger turboprops has not been stable over the last 12-18 months. Some of the seemingly more marketable turboprops have been experiencing considerable volatility associated with an extending product life cycle and greater used availability with the ATR72-600 being particularly impacted. The -600 indeed suffered during…

By: Aircraft Value News

April 2, 2018

AVN

Appetite for Airliner VVIPs Remain Limited

The development of dedicated long range business jets, the long lead times and the existing inventory of the converted airliners continues to limit the appetite for airliner types although the emergence of A380s and A340-500/-600s onto the market offers a solution. Usually a limited operator basis is usually seen as…

By: Aircraft Value News

April 2, 2018

AVN

A340-300 Values at Scrap Levels

The values of the A340-300 have continued to fall such they are now at virtually scrap levels. At least 40 have been scrapped and a similar number are lying idle in storage with little likelihood of being returned to service. The aircraft has increasingly been replaced by newer twins and…

By: Aircraft Value News

April 2, 2018

AVN

Aircraft Asset Assessment- A340-300

Market Presence. The A340-300 has previously provided operators with considerable operating flexibility but no longer. The four-engine configuration, combined with long haul capability, opened up a number of routes unable to support either the larger B777-300ER or the ETOPs constrained twin engined B777-200ER. The –300 has CFM56-5 engines while the…

By: Aircraft Value News

April 2, 2018

AVN